Days after a parliamentary panel advised the government to give five more years to revive Air India, aviation think tank Centre for Asia Pacific Aviation on Monday said that postponing disinvestment of the state-run airline would further hit its valuation. CAPA Chief Executive Kapil Kaul said: "Parliamentary panel recommending divestment of Air India be postponed by 5 years will further erode its value. CAPA estimates that the government would need to inject additional USD 2.5-3 billion funding, and these may be conservative estimates."
CAPA chief was responding to panel's suggestion that asked the government to revisit its decision to privatise Air India at the end of the 10-year turnaround plan in 2022. The CAPA further said that the process of Air India's privatisation should be 'fast- tracked' to maximise investor interest and value for the government.
According to a report in Mint, the government will invite expressions of interest for Air India sale after the budget presentation on February 1. "The invitation calling for expressions of interest from potential bidders is being drafted, and will be submitted to a ministerial group that has been tasked with Air India's privatization," the report quoted civil aviation secretary Rajiv Nayan Choubey as saying.
This week, a parliamentary panel in a report concluded that this wasn't a right time to privatise the national carrier and the Centre should review its decision. The panel's observation came a week after the government's premier policy advisory body NITI Aayog in its report on Air India made it clear that the further financial support for the loss-making airline was not viable.
09/01/18 Business Today
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CAPA chief was responding to panel's suggestion that asked the government to revisit its decision to privatise Air India at the end of the 10-year turnaround plan in 2022. The CAPA further said that the process of Air India's privatisation should be 'fast- tracked' to maximise investor interest and value for the government.
According to a report in Mint, the government will invite expressions of interest for Air India sale after the budget presentation on February 1. "The invitation calling for expressions of interest from potential bidders is being drafted, and will be submitted to a ministerial group that has been tasked with Air India's privatization," the report quoted civil aviation secretary Rajiv Nayan Choubey as saying.
This week, a parliamentary panel in a report concluded that this wasn't a right time to privatise the national carrier and the Centre should review its decision. The panel's observation came a week after the government's premier policy advisory body NITI Aayog in its report on Air India made it clear that the further financial support for the loss-making airline was not viable.
09/01/18 Business Today
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